Key Terms: Chapter Seventeen
(ABC) A costing system for situations where overhead is high and/or a variety of products are produced; costs are traced to activities and then activities are allocated to production
(Business to Business) A system that enables data interchange between companies; sometimes sufficiently robust to permit automatic inventory replenishment, etc.
A planning tool that outlines the financial plans for an organization; there are various types of budgets -- operating, capital, and financial
Certified Financial Manager; a professional designation of competency in the field of financial management that is issued by the Institute of Management Accountants
Certified Management Accountant; a professional designation of competency in the field of management accounting that is issued by the Institute of Management Accountants
The primary person responsible for the cost and managerial accounting functions
Cost components needed to change raw materials to finished goods, specifically direct labor and manufacturing overhead
The process by which an organization's cost is collected, assigned, and interpreted
The amount of cost attributable to goods reaching the end of production; beginning work in process (wip) + (direct materials, direct labor, manufacturing overhead) - ending wip
Gross wages paid to those who physically and directly work on the goods being produced
The costs of all materials that are an integral part of a finished product and that have a physical presence that is readily traced to that finished product
(Enterprise Resource Package) Comprehensive database software that tracks an almost endless array of business and accounting data
Finished goods represent the cost of completed products awaiting sale to a customer
Institute of Management Accountants; a professional association for management accountants that sponsors the CMA and CFM designations
product costs that attach to inventory
A costing approach whereby actual labor and material is tracked for each job or product
(Machine to Machine) enables connected devices to communicate with each other
all costs of manufacturing other than direct materials and direct labor (also called factory overhead)
A cost not attributable to the acquisition or manufacture of inventory; expensed as incurred
Product costs that are direct in nature; direct materials and direct labor
A product costing method particularly well suited to situations where production occurs in a continuous process; costs are pooled and assigned to aggregate output
Costs that attach to a product; the summation of direct materials, direct labor, and factory overhead
the components that will be used in manufacturing units that are not yet started -- also known as direct materials
(radio frequency identification) Micro processes embedded in inventory that emit radio frequency signals that enable a computer to automatically track inventory
A system for evaluating elements that are important to the organization and under the control of an employee holding that position
Selling, general, and administrative costs; the period costs of the business
Benchmarks against which actual productive activity is compared
(TOC) Efficiency is improved by seeking out and eliminating constraints within the organization
(TQM) A process for continuous improvement by focusing on customer service and systematic problem solving via teams made up of front-line employees
Deviations from the norm that may provide warning signs of situations requiring corrective action by managers
Goods that are in production but not yet complete; an accumulation of monies spent on direct material, direct labor, and applied manufacturing overhead